Disney Sends Cease-and-Desist to Google Over Alleged AI Copyright Violations as It Signs $1B OpenAI Deal
Disney has issued a cease-and-desist notice to Google alleging widespread copyright infringement tied to the tech giant’s generative AI efforts, according to a letter reviewed by Variety. The warning arrived just as Disney finalized a separate, high-profile AI licensing partnership with OpenAI worth $1 billion over three years.
In the letter, Disney—represented by law firm Jenner & Block—accused Google of infringing its copyrights “on a massive scale” by copying Disney works without authorization to train and develop generative AI models and services. The letter also alleges Google is using those AI systems to “commercially exploit and distribute copies” of protected works to consumers.
The allegations are aimed at Google’s Gemini AI, with Disney asserting that the model has infringed character likenesses and related copyrighted materials.
Timing is central to the dispute. Disney sent the cease-and-desist on Wednesday. One day later, Disney announced a $1 billion agreement with OpenAI that will allow users of OpenAI’s Sora video platform to create clips using more than 200 characters spanning Disney, Marvel, Pixar, and Star Wars franchises.
Disney CEO Bob Iger has said the OpenAI arrangement is not a threat to creatives, positioning the deal as a licensed use of Disney’s intellectual property rather than an unauthorized extraction of it.
- Legal pressure on Google: Disney alleges unauthorized copying of its works for AI training and downstream commercial use.
- Licensed partnership with OpenAI: A three-year, $1 billion agreement enabling Sora users to generate videos with Disney-owned characters.
- Broader enforcement posture: Disney has also pursued other AI companies in court, including a lawsuit with Universal against Midjourney alleging copyright violations.
The episode highlights a widening divide in how major rights holders are approaching generative AI: pursuing legal action against companies accused of training on copyrighted material without permission, while simultaneously exploring licensing frameworks with other AI developers.
For the AI sector—and for digital content markets more broadly—the juxtaposition underscores a core fault line: whether copyrighted works can be used to build commercial AI models without consent, or whether licensing and revenue-sharing deals will become the standard path for using well-known characters and franchises.